Castellum AB (publ) (STO:CAST) Improved Cashflow, But Continued Write Downs On Properties

Castellum AB (publ) (STO:CAST) * Rental income for the period January-September 2008 amounted to SEKm 1,849 (SEKm 1,669) corresponding period previous year). * Income from property management improved by 6% to SEKm 739 (698), equivalent to SEK 4.51 (4.26) per share. * The changes in value on properties amounted to SEKm -791 (375) and on interest rate derivatives to SEKm -195 (104). * Net income after tax for the period amounted to SEKm -172 (848), equivalent to SEK -1.05 (5.17) per share. * The investments amounted to SEKm 2,221 (2,093) of which SEKm 1,174 (1,367) refer to acquisitions and SEKm 1,047 (726) to new construction, extensions and refurbishments. * The total value of the properties amounted to SEKm 29,119 (27,717) with a loan to value ratio of 50% (45%). Unutilized credit in long term credit agreements amounted to SEKm 1,873 (1,375).

Income from property management for the period, i.e. net income excluding changes in value and tax, amounted to SEKm 739 (698), equivalent to SEK 4.51 (4.26) per share. The improvement is 6% and is due to higher rental income and the effect of investments made but has also been limited by increased interest rate costs. The net leasing amounted to SEKm 70 (93).

In order to show the uncertainty seen on the real estate market the required yield in the internal valuation has been increased also in the third quarter. The value of the properties have been reduced with SEKm -791 (375) in total. The changes in value on derivatives amounted to SEKm -195 (104). Net income for the period was SEKm -175 (848), equivalent to SEK -1.05 (5.17) per share.

"The development of the results goes two ways - improved cashflow, but continued write downs on properties" comments Castellum's CEO, Håkan Hellström. "In times of turbulence and large changes in value a strong cashflow and low loan to value ratio is even more important" adds Håkan Hellström.

An election committee has been appointed in accordance to the Annual General Meeting's decision. The election committee is formed by: Maj-Charlotte Wallin representing AFA Försäkring, Lars-Åke Bokenberger representing AMF Pension, Carl Rosén representing Andra AP-fonden and the Chairman of the Board Jan Kvarnström.

Enclosure: Interim Report January - September 2008

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to approx. SEK 29 billion, and comprises commercial properties. The real estate portfolio is owned and managed by six wholly owned subsidiaries with strong local roots in five growth regions: Greater Gothenburg, the Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland. Castellum is listed on OMX Nordic Exchange Large Cap.

For further information, please contact Håkan Hellström, CEO, phone +46 31 60 74 00 / mobile +46 705-60 74 56 Ulrika Danielsson, Finance Director, phone +46 31 60 74 00 / mobile + 46 706-47 12 61

www.castellum.se

Castellum AB (publ) discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.



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Castellum AB (publ)

http://www.castellum.se

ISIN: SE0000379190

Stock Identifier: XOME.CAST